Glossary

Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.

Second Mortgage

An additional mortgage placed on a property that has rights that are subordinate to the first mortgage.

Settlement (or Closing)

The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance).

Settlement Cost (HUD guide)

HUD – published booklet that provides an overview of the lending process, and that is given to consumers after completing loan application.

Settlement Costs

Also known as closing costs, these costs are for services that must be performed before your loan can be initiated. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney’s fees, taxes, and surveying fees.

Survey

A measurement of land, prepared by a licensed surveyor, showing a property’s boundaries, elevations, improvements, and relationship to surrounding tracts.

Sweat Equity

Value added to a property in the form of labor or services of the owner rather than cash.